Despite What You Hear Housing Could Continue to Rise in 2023
Just like when Covid-19 emerged, speculation about the housing market came from all directions, and some were right, but most were wrong...really wrong. Now here we are in the face of the second year of four-decade high inflation numbers, the highest interest rates in 20 years, emerging from one of the most unprecedented "sellers markets" ever seen, and now one of the most trusted and recognized sources of real estate information is predicting prices to continue to rise in 2023. Granted, these projected increases won't be what they were in 2021 and 2022, but Realtor.com in their 2023 Housing Market Forecast is suggesting an average increase in housing at about 5.4%, which seems a somewhat reasonable number considering it will be the first single-digit annual increase since 2020. The forecast also points out that the average mortgage payment could be about 28% higher than it was this year, weighing in at approximately $2,430 dollars. Keep in mind that for the first part of this year, average interest rates were hovering at or even below 3%, so that increase of 28% is not a true "apples to apples" comparison as the Federal Reserve Board (the Fed) didn't start their rate acceleration until Q2 of 2022. So, if you take this interpretation from Realtor.com (who coordinate with the National Association of Realtors®) then sellers will still be in a good position when priced and marketed correctly, while buyers will have the opportunity to be more selective as the market will have more inventory and operate at a much slower pace than the past two years. This combination will, however, leave many on the sideline and force them to rent as the potential to be priced out of the market will continue based on rising prices and higher interest rates. As we always preach here on PropertyGuerilla.com, the need to assemble a team and have a plan is no different for 2023 than it has been in the craziness of the years past. Perhaps now even more important as there will be more to see and it's best to have a trained and trusted set of eyes to help see it more clearly. Also, using any method available to find potential deals that may not be seen by everyone else, whether buying or renting, might just give you a leg-up on the competition! Remember, the best deals are often the ones that no one else knows about! #realestate #interestrates #housing #buyingrealestate #sellingrealestate #housinginventory #rentalhousing #realtor #thefed #propertyguerilla #federalreserveboard #nar #nationalassociationofrealtors